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Just like me, I am planning to do it in the future for my children. Since I saw a lot of people having life insurance to their children while at very young age, so for me, I will do like what OP did.
I also hope that OP's plan is really mature to realize the investment for his baby by thinking about where he will store his Bitcoin assets.
Storing our Bitcoin assets or crypto assets in a secure wallet is very important, what you suggest to the OP is that it is true that it is safer to store Bitcoin purchases for their children in a Hard Wallet for maximum security.
Moreover, this asset will be passed on to the baby, so it must really be maximized in terms of storage security because it takes a long time, of course, to be handed over to the baby when he is old enough.
If OP keep it on a hot wallet, in my opinion, it's not wise, especially if OP only store it on an exchange, it can be bad. I hope OP avoids keeping it on exchange.
But we know Hard Wallet isn't cheap at all, especially since OP is still in a condition where he has to meet the many needs of his baby. So maybe besides OP having to set aside some money to invest for the baby, OP also has to set aside to buy a Hard Wallet.